Daily Champion (Lagos)

Nigeria: Privatisation: Nupeng Calls for Transparency

Lagos — NATIONAL Union of Petroleum and Natural Gas Workers (NUPENG) has called for absolute transparency in thrashing out all labour issues in the much advertised privatisation of the nation's refineries.

Blue collar chief, Comrade Peter Akpatason said in an interview with Business Champion that the refrain on staff rightsizing in the process of privatising the refineries might defeat the policy target of the exercise.

According to him, what is needed in the Nigerian National Petroleum Corporation is provident fund management and optimum engagement of the existing workforce to create additional value in the system.

He also called for involvement of the union in all stages of the privatisation exercise if there were genuine efforts at making the exercise transparent.

As part of the economic reform agenda of the present administration, and restructuring of the robust NNPC, government had earmarked the nation's four refineries with combined installed capacity of 445,000 barrels per day for privatisation.

President Olusegun Obasanjo had in 2003 explained that the measure was taken to make the refineries more efficient and free up more funds for core state functions of providing a congenial infrastructural base for the private sector to drive the economy.

He had accused those who had benefitted from NNPC's fuel importation contracts of contributing to the moribund state of the refineries which caused acute furl shortages that crippled the economy.

But oil workers in the country under the aiges of PENGASSAN and NUPENG had insisted that the refineries be first rehabilitated and restored on stream before their privatisation to ensure they were not auctioned off at scrap value.

They also persuaded government to adopt strategic partnership with the private sector in running the refineries in order to retain the interest of the masses in the national assets.

Group Managing Director of NNPC, Mr Funso Kupolokun recently announced reactivation of the refineries and subsequent repair of pipelines that provide them crude oil feedstock.

Business Champion gathered that the National Council on Privatisation has fixed the privatisation of refineries to later part of the year but investors are said to be worried about the staff size of the refineries.

So far none of the major downstream players has admitted expressing desire to buy deep into the ownership structure of the refineries under the strategic partnership option preferred by oil workers.

But in an interview with Business Champion, Comrade Akpatason whose NUPENG members are likely to be swept off should NNPC insist on trimming the workforce said the staff strength of the refineries has never been the problem.

According to him, the problem is over politicisation of critical decisions in managing the refineries.

He warned against mass retrenchment in the refineries, advising instead that priority be placed on plugging the traditional leakages that drain funds from the system.

Contending that the refineries still held investment attraction, the NUPENG boss called for due process and strategic partnership in choosing core investors in the refineries.

He advised the National council on privatisation and the Bureau of Public Enterprises to first audit the asset value of the refineries to establish their market work before calling for bids.

"Our position has been made clear; all we want is transparency, consultation and due process, "he said, adding "staff size is not the problem; the real problem is over politicisation of the process.


Copyright © 2005 Daily Champion. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica aggregates and indexes content from over 130 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.

Comments Post a comment